After several years of most Americans having a low opinion of the Real Estate sector, it appears things are finally changing. Real Estate in Orange County, California has definitely made a nice comeback in the last couple of years as interest rates have remained low. Orange County real estate has benefited from the high loan amounts allowed by government loan programs, especially the VA loan. In 2014 a Veteran can purchase a home (in Orange County or Los Angeles county) for $687,500 with no down payment. And for a lesser down payment that required on other types of financing a VA loan can be as high as $1,500,000. As more military Veterans who realize how good the VA program is, and that they’re are probably eligible for it, the program has become very popular.
In a recent Gallup poll, Americans were asked to rate 24 different business sectors and industries on a five-point scale ranging from “very positive” to “very negative.” The poll was first conducted in 2001, and has been used as an indicator of “Americans’ overall attitudes toward each industry”.
For the first time since 2006, Americans had an overall positive view of real estate, giving the industry a 12% positive ranking.
Americans’ view of the real estate industry worsened from 2003 to the -40% plummet of 2008. Gallup offers some insight into the reason for decline:
Prices Dropped
“In late 2006, real estate prices in the U.S. began falling rapidly, and continued to drop. Many homeowners saw their home values plummet, likely contributing to real estate’s image taking a hard hit.”
Housing Bubble
“The large drops in the positive images of banking and real estate in 2008 and 2009 reflect both industries’ close ties to the recession, which was precipitated in large part because of the mortgage-related housing bubble.”
Bottom Line
“Although the image of real estate remains below the average of 24 industries Gallup has tracked, the sharp recovery from previous extreme low points suggests it is heading in the right direction.”
Authored by Tim Storm, a California Mortgage Loan Officer MLO 223456 – Please contact my office at the Emery Financial. Direct line at 949-640-3102. www.OrangeCountyVALoans.com
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